UT plans $800 million capex

IDX-listed heavy equipment and mining company PT United Tractors Tbk (UT) plans capital expenditure (capex) worth US$700 million-$800 million this year, the bulk of which to be allocated for its mining contractor business.

 

"As much as 80 percent of the capex is for the mining contractor business to replace aging heavy equipment," UT Corporate Secretary Sara K. Loebis told news portal kontan.co.id on Saturday.

 

The remainder will be used for office, warehouse, workshop and mining infrastructure maintenance.

 

Last year, UT allocated $800 million-$850 million for capex, of which about $650 million was used to purchase heavy equipment for mining services company subsidiary PT Pamapersada Nusantara.

 

The news portal said that UT has set coal production target of 9 million tons this year, up from last year?s target of 6.8 million tons. The company also set heavy equipment sales target of 4,900 units this year, up around 2 percent from last year?s target of 4,800 units. (*)